Well, one equities dealer was caught with his hand in the till….he is said to have benefited by Rs. 2 crores. Hdfc Trustee company has been fined Rs. 55 lakhs. The structure of an amc is such that the Trustees are responsible to certify that the internal processes are fine and working. Obviously it was [...]
The average return on equity investments (without reinvestment of dividends) is about 18% over the past 31 years. Does it mean that every year you got 19%? The answer is no. Such ‘zero standard deviation return’ is possible only in CERTAIN debt instruments. In equity investments there have been years of +242% as well [...]
Sir I have Rs. 100,000 to invest, what should I do? Want to invest for 7 years… Answer: In such turbulent times you should not invest in an equity scheme. So please invest this money in a clutch of balanced fund – Franklin Templeton Balanced fund, Reliance..fund (do not remember which), Hdfc Prudence fund, and [...]
In all public forum nowadays (and even earlier) there is a tendency to blame the distributor. Let us see a typical debt market presentation: Fund manager: Hello, today we are going to talk about debt funds ‘Debt funds have done extremely well over the past few years….’ Journalist: Why is there no retail participation? FM: [...]
There have been many changes made by the mutual fund regulator (SEBI). Many of them have hurt the industry – and hit badly. However the biggest change which has hurt – has hurt the distributor, not the fund houses. That is the crux of the change. Did the AMFI protest ? The answer is NO. [...]
Many people look at the ratings of a mutual fund before investing in them. This is what is the intention of the rating agencies! However they will tell you that ratings are backward looking (there is only Mercer which does forward looking ratings, but obviously available at a very high fee – which is fair [...]